According to the results of the recent survey conducted by Melbourne Institute, the rate of inflation is expected to increase up to 2.6%. Nevertheless, the readings are within the target range of 2-3%, which was set by the RBA.
Therefore, the inflation expectations have been stable over the last 3 months. However, the Australian authorities should stay alert so that the expectations wouldn’t grow into a real increase in the rate of inflation. Otherwise, the RBA will have to choose whether to toughen its monetary policy in order to curb inflation or to keep easing the policy in order to stimulate economic growth.
Forex.
According to , the Australian Dollar keeps strengthening against the US Dollar. The experts report that AUD USD is forming an upswing represented by wave А/В of level H4.
The closest level of resistance is located around the top border of the bearish MF sloping channel. The current bullish move will be completed as soon as the price overcomes the bottom of the bullish MF sloping channel and consolidates below 1.0208 (as shown below).
